The Inter-American Development Bank (IDB) has approved a $100 million loan to help Peru increase business productivity through investments in innovation, the bank announced. The program aims to boost innovation spending, finance the growth of new ventures, close technology gaps among micro, small, and medium-sized enterprises, encourage more private financing, and spread these opportunities across all regions of the country. The goal is to raise the productivity of Peru’s small and medium businesses, which lags well behind large companies in Peru and compared to their counterparts in OECD countries.
The program is the second operation under the bank’s Conditional Credit Line for Investment Projects called “Sectoral Innovation Program,” which works to increase business productivity nationwide. More than 135,000 small and medium enterprises with potential to invest in innovation will benefit, along with 5,000 innovative startups.
Peru’s Ministry of Production will implement the program through the National Program for Technological Development and Innovation, known as PROINNOVATE. The initiative aligns with the IDB Group’s Country Strategy with Peru for 2022–2026, which focuses on productive development, environmental sustainability, and digital transformation.
The IDB loan has a 17.6-year repayment period, a seven-year grace period, and an interest rate based on SOFR. Peru will contribute $22 million in local counterpart funding, bringing the total program value to $122 million.
